MIRA INFORM REPORT

 

 

Report Date :

30.08.2007

 

IDENTIFICATION DETAILS

 

Name :

VODAFONE  ESSAR LIMITED

 

 

Formerly Known As :

HUTCHISON ESSAR LIMITED

 

 

Registered Office :

Hutch Houde, G Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

21.02.1992

 

 

Com. Reg. No.:

11 - 119108

 

 

CIN No.:

[Company Identification No.]

U32200MH1992PTC119108

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMH07197B

 

 

PAN No.:

[Permanent Account No.]

AAACH5332B

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Providing Telecom Services.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 355448

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is one of the leading telecom service provider. General financial position is satisfactory. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered / Corporate Office :

Hutch Houde, Ganpat Rao, Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-66645000 / 56645000

Fax No.:

91-22-24963645 / 66661222 / 66661200

E-Mail :

Krishnan.iyer@hutch.in

Website :

http://www.hutch.in

 

 

Delhi Office :

 C-48, Okhla Industriasl Area, Phase II, Delhi - 110020

Tel. No.:

91-9811090001

 

 

Mumbai Office :

 Ganpat Rao, Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-66645000

 

 

Karnataka Office:

Maruti Infotech Centre, Ground Floor, B,11/1, 12/1, Koramangala, Intermediate Ring Road, Amar Jyoti Layout, Bangalore - 560071

Tel. No.:

91-80-41193000

 

 

Gujarat Office :

6 Floor SAKAR II, ELLIS Bridge Ahmedabad - 380006

Tel. No.:

91-26577228/29

 

 

Rajasthan Office :

Gaurav tower, 5th Floor, Malviya Nagar, Jaipur

Tel. No.:

91-9982212950/51/52

Kolkata Office:

 Constantia  Office Complex, 4 Floor, 11 UN Bramachari Street, Kolkata - 700017

Tel No.:

91-9830098650

 

 

Uttar Pradesh (East) Office:

5 Shahnajaf Road, Hazratganj, Lucknow - 226001

Tel No.:

91-522-6544301

 

 

Punjab  Office:

C – 131, Phase – VIII Sas Nagar, Eltop, Industrial Area, Mohali , Punjab

Tel No.:

91-172-5090300

 

 

Andhra Pradesh  Office:

6 Floor Varun Tower II, Begumput, Hyderabad, Andhra Pradesh-500016

Tel No.:

91-9885298852

 

 

 Uttar Pradesh (West)  Office:

135/1 and 137/1,Mangal Pandey Road, University Road Meerut City, Meerut – Uttar Pradesh – 250004

Tel No.:

91-9719018501

 

 

Chennai and Tamil Nadu Office:

 9 th Floor, TVH Beliciaa Towers I , Block No. 94 MRC Nagar, Santhome, Chennai

Tel No.:

91-98841-98841

 

 

Haryana Office:

Yogesh Towers Kunjpura Road, Karnal, Haryana

Tel No.:

91-184-2207410

 

 

Kerala  Office:

Ashish Building Shanmugham Road, P.O. Kochin Kerala - 682031

Tel No.:

91-484-2382281/82/83

 

 

Maharashtra and Goa Office:

 The Metropolitan F.P. No.27 Survey No. 21 Old Mumbai Pune Highway Wadekawadi , Shivaji Nagar, Pune – 411 005

Tel No.:

91-2030116000/01

 

 

DIRECTORS

 

Name :

Mr. Analjit Mohanbhai Singh

Designation :

Director

Address :

15, Aurangzeb Road, New Delhi – 110011, New Delhi

Date of Birth/Age :

11.01.1954

Date of Appointment :

24.04.2006

Directorship in Other Companies :

v      Max Ateev Limited

v      Max New York Life insurance Company Limited

v      Max Healthcare Institute Limited

v      Dynavest India Private Limited

v      IDBI Bank Limited

v      Hero Honda Motors Limited

v      Hero Corporate Services Limited

v      Indian School of Business

v      Grow Talent Company Limited

v      Max Heal Thstaff International Limited

v      Acqvire Talent Services Limited

v      Malsi Holdings Limited

v      Max Medical Services Private Limited

v      Liquid Investment and Trading Company Limited

v      Mohair Investment and Trading Company Private Limited  

 

 

Name :

Mr. Cannion Fok Ning-Kin

Designation :

Director

Address :

1 King Tax Street, 10th Floor, Kowloon, Hong Kong

Date of Birth/Age :

22.08.1951

Date of Appointment :

31.03.1995

 

 

Name :

Mr. Frank John Sixt

Designation :

Director

Address :

Flat G / B, Kinghts Bride, Court No. 28, Barker Road, The Peak, Hong Kong

Date of Birth/Age :

29.11.1951

Date of Appointment :

22.05.1998

 

 

Name :

Mr.Dennis Lui

Designation :

Director

Address :

Duplex 5 Dynasty Villa, Dynasty Heights, Beacon Hill, Kowloon, Hong Kong

Date of Birth/Age :

02.03.1951

Date of Appointment :

25.09.2001

 

 

Name :

Mr. Asim Ghosh

Designation :

Managing Director

Address :

64, NCPA Apartments, ‘B’ Wing, Nariman Point, Mumbai – 400021, Maharashtra, India

Date of Birth/Age :

07.12.1947

Date of Appointment :

25.09.1998

 

 

Name :

Mr. Yu Ting Chan

Designation :

Director

Address :

6 B, Chenyu Court, 22-24, Kennedy Road, Hong Kong

Date of Birth/Age :

15.10.1950

Date of Appointment :

01.02.2005

Date of Ceasing :

01.02.2005

Directorship in Other Companies :

v      Usha Martin Telematics limited

v      UMT Investments Limited

v      Jaykay Finholding India Private Limited

v      Telecom Investments India  Private Limited

 

 

Name :

Mr. Geoffrey Donald Carolan

Designation :

Whole Time Director

Address :

12th Floor Urmi, 65 Worli Sea Face, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

13.03.1966

Date of Appointment :

25.09.2001

 

 

Name :

Mr. Naryan Subramaniam Ayyapankav

Designation :

Director

Address :

1, Smruthi Plot # 27, Pestom Sagar Road No. 4, Chembur, Mumbai – 400089, Maharashtra, India

Date of Birth/Age :

09.11.1960

Date of Appointment :

28.03.2003

Date of Ceasing :

20.05.2004

 

 

Name :

Mr. Shivendra Hukumchand Gupta

Designation :

Director

Address :

A1-62, Mahindra Gardens, S. V. Road, Goregaon – West, Mumbai – 400062, Maharashtra, India

Date of Birth/Age :

12.08.1970

Date of Appointment :

28.03.2003

 

 

Name :

Mr. Christopher John Foll

Designation :

Whole Time Director

Address :

9-10, Floor, Suraj Apartment, Bhulabhai Desai Road, Mumbai – 400026

Date of Birth/Age :

16.08.1956

Date of Appointment :

23.06.2003

 

 

Name :

Mr. B. Anantharaman

Designation :

Director

Address :

EC / 301-302, 3rd Floor, Emerald Court – I, Essel Towers, Mehrauli, Gurgaon- 122002

Date of Birth/Age :

08.01.1955

Date of Appointment :

23.03.2004

Directorship in Other Companies :

v      Max India Limited

v      Max New York Life Insurance Company Limited

v      Max Healthcare Institute Limited

v      Max Healthstaff International Limited

v      Pharmax Corporation Limited

v      Trophy Holdings Private Limited

v      Alps Hospital Private Limited

v      Neeman Medical International Asia Limited

 

 

Name :

Mr. Chetan Nanji Savla

Designation :

Director

Address :

402, Amartaru, 3 New, Nagardas Road, Andheri [East], Mumbai – 400069, Maharashtra

Date of Birth/Age :

15.07.1968

Date of Appointment :

20.05.2004

 

 

Name :

Mr. Ravikant Nandkishori Ruia

Designation :

Director

Address :

Bin Hamoodah Villa, Plot 992, 332/14, Villa 17, Jumeirah, Dubai, U.sA.E

Date of Birth/Age :

22.04.1949

Date of Appointment :

01.02.2005

 

 

Name :

Mr. Anshuman Shashi Ruia

Designation :

Director

Address :

67 A, Walkeshwar Road, Opp. Birla School, Walkeshwar, Mumbai – 400006, Maharashtra

Date of Birth/Age :

11.03.1971

Date of Appointment :

01.02.2005

 

 

Name :

Mr. Vikash Hari Prasad Saraf

Designation :

Director

Date of Birth/Age :

18.12.1968

Date of Appointment :

01.02.2005

 

 

Name :

Mr. Yashodhan Madhusudan

Designation :

Director

Address :

2, Sumit, 31 Carmichael Road, Mumbai – 400026, Maharashtra

Date of Birth/Age :

04.11.1947

Date of Appointment :

01.02.2005

 

 

Name :

Mr. Sandip S. R. Das

Designation :

Whole Time -  Director

Address :

Flat 1001, 10th Floor, Citadel L. D. Ruparel Marg, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

11.01.1958

Date of Appointment :

24.04.2006

Directorship in Other Companies :

v      Aircel Digilink India Limited

v      Hutchison Esar Cellular Limited

v      Hutchison Essar Telecom limited

v      Hutchison Essar South Limited

v      Hutchison Telecom East Limited

v      Hutchison Paging Services Private Limited

 

 

Name :

Mr. Tim Keith Lincoln Pennington

Designation :

Director

Address :

Harbour Plaza Hotel, Hunghom Kowloon, Hong Kong

Date of Birth/Age :

24.11.1960

Date of Appointment :

01.02.2005

 

 

Name :

Mr. Krishnan Seshan Iyer

Designation :

Secretary

Address :

79 Tejal Road No. 2, Hindu Colony, Dadar, Mumbai – 400014, Maharashtra, India

Date of Birth/Age :

09.08.1968

Date of Appointment :

10.12.2003

 

 

Name :

Mr. Rajesh Begur

Designation :

Alternative Director

Address :

Surya Apartments, A – 501, Bhulbhai Desai Road, Mumbai – 400016, Maharashtra

Date of Birth/Age :

01.10.1964

Date of Appointment :

14.06.2006

Directorship in Other Companies :

v      A. R. A. Corporate Consultants Private Limited

v      Aeneas Advisors India Private limited

v      Pride Technologies Consulting India Private Limited

v      Savvis Communications Private limited

v      Sendo Cellular Telecom India Private Limited  

 

 

Name :

Mr. Arun Sarin

Designation :

Director

Address :

Toad Hall, Old Avenue, Weybridge, Surrey, KT13 OQE, England,

Weybridge – 000 000

Date of Birth/Age :

21.10.1954

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Canning Ning-Kin

Designation :

Director

Address :

1 King Tak Street, 10th Floor, Kowloon, Hong Kong

Date of Birth/Age :

22.08.1951

Date of Appointment :

31.03.1995

 

 

Name :

Mr. Paul Michael Donovan

Designation :

Director

Address :

37 Park Town, Oxford ox26SL, United Kingdom

Date of Birth/Age :

28.06.1958

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Gavin John Darby

Designation :

Director

Address :

Rodona House, Rodona Weybridge, Surrey Weybridge KT13ONP, United Kingdom

Date of Birth/Age :

15.02.1956

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Robert Nicolas Barr

Designation :

Director

Address :

LindField, Faringdon Road, Abingdon,  Oxfordshire OX14 1 BD,

Abingdon – 000000

Date of Birth/Age :

06.06.1958

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Timothy James Harrabin

Designation :

Alternate Director

Address :

Jasmine House, The FIRS, Post Office Road, InkPen, Hunger Ford, Berkshire, RG17 9PU, HungerFord - 0000000

Date of Birth/Age :

10.02.1962

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Mathew John Lushington Kirk

Designation :

Alternate Director

Address :

Scotts Farm, Bury Lane, Bratton Westbury, Wilt Shire, BA13 4RD,

Westbury – 000 000

Date of Birth/Age :

10.10.1960

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Ian Locke

Designation :

Alternate Director

Address :

38 ST Margarets road, Swindon SN31RX, United Kingdom

Date of Birth/Age :

18.02.1970

Date of Appointment :

08.05.2007

 

 

Name :

Mr. Thomas Eric Hargreaves

Designation :

Alternate Director

Address :

Desmonds Barn, Howe Farm, Howe Road, Watlington, Oxfordshire, OX49 5EY, Watlington - 000000

Date of Birth/Age :

13.02.1970

Date of Appointment :

08.05.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Central Depository Services India Limited

 

324265481

Hutchison Telecommunications India Limited

 

18835021

Gupta Hukumchand Shivendra

 

10

Sunil Ratanlal Ranka

 

10

Krishnan Seshan Iyer

 

10

Al-Amin Investments Limited, Mauritius

 

15940496

Asian Telecommunication Investments Mauritius Limited

 

19238254

CCII Mauritius Inc. Mauritius

 

8756637

Essar Telecom India Holdings Limited, Mauritius

 

21254008

Vilsat Investments Private Limited Joint Essar Teleholdings Limited

 

49612857

Essar Teleholdings Limited

 

19796234

Euro Pacific Securities Limited, Mauritius

 

2629091

Hutchison Telecommunication India Limited Mauritius,

 

13045992

Indusind Telecom Network Private Limited

 

17535271

Jaykay Finholding India Private Limited

 

2033170

Max Telecom Ventures Limited

 

10843882

Mobilvest, Mauritius

 

32881788

Prime Metals Limited, Mauritius

 

5258182

Telecom Investments India Private Limited

 

44459886

Trans Crystal Limited, Mauritius

 

28669371

Usha Martin Telematics Limited

 

32310362

 

Equity Share Break up:

 

S.No.

Category                                                  

Percentage

1

Directors or Relatives of Directors

0.00

 

BUSINESS DETAILS

 

Line of Business :

Providing Telecom Services.

 

 

Products :

Telecom Services

 

GENERAL INFORMATION

 

No. of Employees :

2000

 

 

Bankers :

Not Available

 

 

Financial Institution:

IL and FS Trust Company Limited

IL and FS Financial Centre, Plot No. C-22, G Block, BA, Kurla Complex Bandra E, Mumbai – 400 051, Maharashtra, India

 

 

Auditors :

 

Name :
  • Natraj Ramkrishna

      Chartered Accountant

 

  • Neeraj Gupta

      Chartered Accountant

 

Address :
  • Price Warehouse, 252, Veer Savarkar Marg, Mumbai – 400028, Maharashtra, India 

 

  • 252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India

 

 

Associates/Subsidiaries :
  • Aircel Digilink India Limited

      CIN No. : U64201DL1997PLC088088

 

  • Fascel Limited

      CIN No. : U32100GJ1995PLC035282

 

  • Hutchison Essar Telecom Limited

              CIN No. : L64202DL1997PLC088087

 

  • Hutchison Essar South Limited

      CIN No. : U74899DL1995PLC074451

 

  • Hutchison Telecom East Limited

             CIN No. : U32204WB1992PLC079998

 

  • Vodafone Essar Mobile Services Limited

      CIN No. U64202DL1992PLC088087

 

  • Vodafone Essar South Limited

       CIN No. U74899DL1995PLC074451

 

  • Vodafone Essar Digilink Limited

      CIN No.  U64201DL1997PLC088088

 

  • Vodafone Essar Gujarat Limited

       CIN No. U32100GJ1995PLC035282

 

  • Vodafone Essar Cellular limited

      CIN No. U64202TZ1995PLC00764

 

  • Vodafone Essar Spacetel Limited

      CIN No. U72200DL1997PLC085764

 

  • LAKEVIEW ENTERPRISES

      41, Sector 5, Chandigarh - 160009

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

500000000

Equity Shares

Rs. 10/-each

Rs 5000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

414086850

Equity Shares

Rs. 10/-each

Rs. 4140.868 millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.12.2006

31.12.2005

31.12.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4140.869

3431.005

1084.388

2] Share Application Money

0.000

15613.686

0.000

3] Reserves & Surplus

84721.344

64265.167

4697.572

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

88862.213

83309.858

5781.96

LOAN FUNDS

 

 

 

1] Secured Loans

10454.870

9553.929

0.000

2] Unsecured Loans

7500.000

2200.000

0.000

TOTAL BORROWING

17954.87

11753.929

0.000

DEFERRED TAX LIABILITIES

16.754

0.000

175.717

 

 

 

 

TOTAL

106833.837

95063.787

5957.677

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6352.064

5123.138

4878.785

Capital work-in-progress

330.376

211.167

560.490

 

 

 

 

INVESTMENT

69978.065

58193.756

0.000

DEFERREX TAX ASSETS

0.000

3.603

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
14.359

9.827

10.444

 

Sundry Debtors
1427.244

1322.516

1115.571

 

Cash & Bank Balances
1859.146

1393.715

2452.541

 

Other Current Assets
1788.523

786.219

706.143

 

Loans & Advances
30954.666

32634.949

343.223

Total Current Assets
36043.938

36147.226

4627.922

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
5758.185

4541.834

4086.742

 

Provisions
112.421

73.269

22.778

Total Current Liabilities
5870.606

4615.103

4109.520

Net Current Assets
30173.332

31532.123

518.402

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

106833.837

95063.787

5957.677

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2006

31.12.2005

31.12.2004

Sales Turnover

16710.005

14149.884

12004.675

Other Income

0.000

0.000

0.000

Total Income

16710.005

14149.884

12004.675

 

 

 

 

Profit/(Loss) Before Tax

3357.509

3924.928

3099.713

Provision for Taxation

0.000

204.474

558.952

Profit/(Loss) After Tax

3357.509

3720.454

2540.761

 

 

 

 

Export Value

0.000

825.460

0.000

 

 

 

 

Expenditure:

 

 

 

Interest

1060.327

254.316

0.000

Depreciation

1214.410

1165.860

0.000

 

 

 

 

Total Expenditure

13352.496

10224.956

8904.962

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2006

31.12.2005

31.12.2004

PAT / Total Income

(%)
20.09

26.29

21.16

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
20.09

27.74

25.82

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.97

9.51

32.61

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.03

0.05

0.54

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.26

0.20

0.71

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.13

7.83

1.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

History

 

Subject was incorporated on 21.02.1992 as Hutchison Max Telecom Limited. The name was changed to  Hutchison Essar w.e.f. 25.03.1999.

 

 

Hutchison Essar in India

 

Hutch established its presence in India in 1994 by acquiring the cellular license for Mumbai. It now has operations in 16 circles accounting for 70% of India's mobile customer base.

Hutchison Essar Limited, with about 18.4 million* customers, is one of the most reputed telecom companies in India. Over the years, it has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country', and the 'Most Creative and Most Effective Advertiser of the Year'.

Hutchison Telecom is a part of the multinational conglomerate - Hutchison Whampoa which has its origins dating back to 1828 in Hong Kong. The Group operates five core businesses in 42 countries across the world, of which, Hutchison Telecom has been one of the pioneers in mobile multimedia communication and spans five continents.

The Essar Group is one of India's largest corporate houses with interests spanning the manufacturing and service sectors like Steel, Oil & Gas, Power, Telecom & BPO, Shipping & Logistics and Engineering & Constructions. The Group has an asset base of over Rs 20 billion (US$ 4.4 billion) and employs over 4000 people.

 

 

Corporation identity number or foreign company registrations number of the company 

U32200MH1992PTC119108

Name of the company

HUTCHISON ESSAR LIMITED

Address

Hutch Houde, Ganpat Rao Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013, Maharashtra

This Form is for

Creation of charge

Type of Charges

Hypothecation

Particular of the charge holder 

CIN : U66020MH1995PTC095507

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTRE, Plot No. C – 22, G Block - BA, Kurla Complex Bandra E, Mumbai – 400051, Maharashtra

Nature or description of the instrument creating charge  

Deed of hypothecation dated 16.02.2006 executed by the company in favour of IL and FS Trust Company Limited as Security Trustee – Details in Annexure I

Date of the instrument creating charge

16.02.2006

Amount Secure by the charge

Rs. 67100.000 Millions

Description of the property charge whether it is a charge on

Stock in Trade

Particulars of the Property charged  

Companies all stocks and receivable and all plant and machinery as described in the deed of hypothecation dated 30.05.2006

 

 

Hutch is the brand name of Hutchison Essar. It established its presence in India in 1994 and was one of the first cellular providers in the city of Mumbai. Over time it has expanded operations across the country and is one of the most respected cellular service providers known for providing world class and innovative services.

 

 

 

 

 

 

 

WEBSITE DETAILS:

 

 

PRESS RELEASE: HUTCHISON ESSAR IS NOW VODAFONE ESSAR

 

 Hutchison Essar is now Vodafone Essar. Eventually, the business will market products and services under the Vodafone brand.


Under the terms of the partnership signed between Vodafone and the Essar Group, announced in a release issued to the London Stock Exchange earlier today, Vodafone will have operational control of Vodafone Essar, and Essar will have rights consistent with its shareholding including proportionate board representation. Ravi Ruia will be appointed by Vodafone as chairman of Vodafone Essar, and Arun Sarin will be appointed by Essar as vice-chairman.

Essar will have certain liquidity rights including, between the third and fourth anniversaries of completion, and subject to regulatory requirements, an option to sell its 33% shareholding in Vodafone Essar to Vodafone for $5 billion or an option to sell between $1-5 billion worth of Vodafone Essar shares to Vodafone at an independently appraised fair market trading value.


This follows Vodafone's announcement on 11 February 2007 that it had agreed to acquire Hutchison Telecommunications International Limited's (HTIL) controlling interest in Hutchison Essar in which Essar is and will continue to be 33% shareholder.



Commenting on the new partnership, Arun Sarin, chief executive, Vodafone, said: "I am delighted that Essar and Vodafone have agreed the terms of an on-going partnership. Essar has played a key role in transforming this business into a leading Indian mobile operator. They  look forward to leveraging this experience and working with their partner as the company enters its next phase of growth in the attractive Indian telecommunications market. They will be bringing the relevant range of Vodafone products and services to the Indian consumer."

Ravi Ruia, vice chairman, Essar, added: "It is terrific that they are joining with the world's leading international mobile company. I welcome them as our partner into this successful business, which they  will now take forward to the next level. Essar was a founding partner in Hutchison Essar and played an active role in building the company, including extending network coverage into several profitable regional markets. By partnering with Vodafone they  expect to create further value in the business."

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.41.24

UK Pound

1

Rs.82.55

Euro

1

Rs.56.06

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions